The online university confirmed financial aid director Tim Lehmann was paid $12,400 for several months of consulting for Student Loan Xpress, one of 15 lenders his office recommends to students seeking school loans.

Such payments are under scrutiny as part of a wide-ranging inquiry by the New York Attorney General's office examining student loan firms and colleges. Minnesota Attorney General Lori Swanson is also seeking similar data from the state's institutions.

The basic question: are college officials being paid by loan companies for getting on a school's recommended lender list?

Capella began an internal review of its own practices in light of the rising concern nationally. Late last week it learned of Lehmann's consulting for Student Loan Xpress in late 2005 and early 2006, Capella president Michael Offerman said Tuesday.

The school placed Lehmann on paid leave this morning. "We're taking this all very seriously," Offerman said.

Student Loan Xpress is one of Capella's major lenders, although students aren't required to choose one of the companies on its recommended list.

The relationship between Capella and Student Loan Xpress predates Lehmann.

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Offerman said he didn't believe Lehmann was connected to the negotiations that made Student Loan Xpress a recommended lender.

Capella and other colleges say they research lenders and put some on recommended lists as a convenience for students. Offerman said there's no financial advantage to students for choosing one of the lenders on its list.

Nationally, the student loan industry has criticized New York State Attorney General Andrew Cuomo's investigation into lending companies for smearing all schools and lenders because of the problems of a few "bad apples."

But the inquiries show no signs of slowing down.

On Monday, the company that owns Student Loan Xpress, announced that three top Student Loan Xpress executives had been placed on administrative leave in response to Cuomo's investigation.

The University of Texas and University of Southern California have also placed top financial aid officials on paid leave amid conflict of interest investigations connected to Student Loan Xpress.

Paul Tosto covers higher education and can be reached at ptosto@pioneerpress.com